KSS Kohls Corporation

Dillard's Inc. (DDS), the leading apparel and home-furnishing retailer in the United States, reported a growth of 2.0% in same-store sales for the four-week period ended May 28, 2011. Merchandise sales for the period shot up 1.9% to $434.7 million compared with $426.5 million in the four-week period ended May 28, 2011.

Comparable store sales and total sales both increased 2% for the seventeen week period ended May 28, 2011. The sales movement was at par with the average total company trend in the Central and Eastern regions and below the trend in the Western region. Category wise, sales in the home and furniture category were substantially below trend for the period.

Kohl's Corporation (KSS), which competes with Dillard's, reported growth in May same-store sales of 0.8%, with total sales increasing 2.5%. Another peer, J.C. Penney Company Inc. (JCP), also reported a decrease of 1.0% in same-store sales with total sales falling 3.3% in May 2011. Same-store sales of another competitor Macy's Inc. (M) reported an increase of 7.4% for May while total sales climbed 8.5%.

Based in Little Rock, Arkansas, Dillard's Inc. is a large departmental store chain in the United States featuring fashion apparel and home furnishings. The company currently operates 306 stores and 9 clearance centers across 29 states, all under the Dillard's brand name. Dillard's Inc.'s stores are mainly located in the Southwest, Southeast and Midwest regions of the US.

The company's primary product categories include: women's and junior's apparel; shoes; accessories and lingerie; men's clothing and accessories; cosmetics; home; and children's clothing. Its merchandise mix consists of both branded and private-label items.

Dillard's shares maintain a Zacks #1 Rank, which translates into a short-term Strong Buy rating. Our long-term recommendation on the stock remains Outperform.

 
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